Which of the following geographic pricing policies would probably handicap a producer wanting to compete with other producers who are closer to a potential buyer?
A)F.O.B.mill
B)F.O.B.delivered
C)Zone pricing
D)Freight absorption
E)All of these would probably handicap a producer.

Question

Quizplus · Accepted Answer

F.O.B. means free on board some vehicle at some place. This means the seller pays the cost of loading and the buyer pays the freight and takes responsibility for damage in transit. The delivered cost varies depending on the buyer's location; hence a customer located farther from the seller would pay more and might buy from a closer supplier.

Which of the Following Geographic Pricing Policies Would Probably Handicap